Europe’s chemical industry is facing one of the most serious crises in its modern history, with rising energy costs, geopolitical instability, weak demand, and aggressive global competition threatening the sector’s future. The Financial Times article focuses on Rotterdam, one of the world’s largest chemical hubs, where plant closures and canceled investments have become symbols of a broader industrial decline spreading across Europe.
Chemical manufacturers across the region are struggling to remain competitive against producers in the United States, China, and the Middle East, where energy and feedstock costs are significantly lower. The conflict in the Middle East has added even more pressure by increasing volatility in oil, gas, and petrochemical feedstocks such as naphtha. While temporary disruptions to Chinese production created short-term opportunities for some European companies, those benefits have been outweighed by surging operational expenses and uncertainty.
Industry leaders warn that Europe’s interconnected chemical infrastructure is especially vulnerable because production facilities rely heavily on one another through shared pipelines, utilities, and feedstocks. When one plant shuts down, it can destabilize an entire industrial ecosystem. Executives fear that continued closures could trigger a domino effect across major industrial regions.
The article also highlights concerns about Europe’s regulatory environment, including slow permitting processes, aging infrastructure, and climate policies that many companies believe increase costs without improving competitiveness. Investment in the sector has fallen sharply, and thousands of jobs have already been lost.
Ultimately, the article argues that the decline of Europe’s chemical industry represents more than a sector-specific problem. Chemicals form the foundation of manufacturing supply chains for industries ranging from automotive and construction to electronics and defense. If Europe continues losing production capacity, it risks becoming increasingly dependent on foreign suppliers for critical industrial materials and weakening its long-term economic resilience.
https://www.ft.com/content/ca09d99d-8d01-403f-905c-03277c55dc9a?utm
